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Thursday, 25.04.2024, 17:12
Potential investors in KVV Liepajas Metalurgs steelworks are from third countries
He said that talks with potential investors might close in the nearest
time. "I hope we will be able to announce good results," the minister
said.
At the same time, Aseradens said that KVV
Liepajas Metalurgs is not a small company, it has serious problems,
therefore the interested parties have many questions.
As reported, Economics Minister Arvils Aseradens (Unity) said in May that
six potential investors had submitted non-binding offers and the government has
given the green light to further negotiations. Aseradens voiced cautious
optimism about chances of re-launching the steelworks.
The Liepaja Court declared KVV
Liepajas Metalurgs insolvent on September 16, 2016.
The government in May 2016 rejected the debt restructuring proposals by KVV Group, the Ukrainian owners of KVV Liepajas Metalurgs, saying that the
proposals envisaged significant participation of the Latvian state in the
metallurgical company without handing over control over the company, tax discounts
and other measures that might be interpreted as unlawful state aid.
The government also authorized the Latvian Privatization Agency (LPA) to
establish a company, FeLM, to which the State Treasury will assign its claim
against KVV Liepajas Metalurgs. The
steel plant owes EUR 65 million to the Latvian state.
Liepajas Metalurgs metallurgical plant based in the Liepaja port city in south-western Latvia
was first declared insolvent after it failed to repay a state-guaranteed loan
to an Italian bank. The government sold the plant to Ukrainian investors,
KVV Group, in late 2014.
Liepajas Metalurgs was renamed KVV Liepajas Metalurgs
and officially re-opened on March 6, 2015, but soon started having problems
again. The company had difficulties paying its electricity bills and wages to
workers. It also missed the deadline for a EUR 2.7 million payment to the
Latvian state, an installment for purchase of the steel plant.